- The Ugandan tax authority has implemented a 5% digital services tax (DST) effective from 1 July 2023.
- Nonresidents earning income from digital services provided to customers in Uganda must register through the Uganda Revenue Authority (URA) website.
- Taxpayers already registered for the value added tax (VAT) digital services rules don’t need to register separately for the DST.
- Failure to register for the DST may result in a 15% withholding tax.
- The VAT digital services regime and the DST regime are separate but apply to the same services.
- Nonresidents providing digital services in Uganda need to carefully review their activities as the DST has no registration threshold.
- Non-residents already registered for the VAT digital services rules may need to monitor their online accounts for automatic DST registration.
Source: kpmg.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
